The Latest Ottawa Real Estate Statistics

Ottawa Real Estate Closes 2023 in Steady State: A Year-End Market Review

The Ottawa Real Estate Board (OREB) has released its latest market update for December 2023. Here's a summary of the key findings:

Sales Activity Overview:

As 2023 drew to a close, the Ottawa real estate market exhibited a pattern of steady growth, signaling potential confidence returning to consumers.

The Ottawa Real Estate Board (OREB) reported 565 homes sold through the MLS® in December 2023, marking a 7.6% increase from the same period in 2022. Despite this uptick, sales remained 16% below the five-year average and 11.9% below the 10-year average for December.

For the entirety of 2023, home sales totaled 11,978 units, reflecting an 11.0% decrease from the previous year. However, OREB President Curtis Fillier expressed optimism, noting that the market seemed balanced, hinting at a potential return in consumer confidence. Fillier predicted that the full impact of rate stabilization might not be felt until the latter half of 2024 but highlighted December's promising activity as a positive indicator for a robust year ahead in Ottawa.

Former OREB President Ken Dekker acknowledged the challenges faced in the market and suggested that while a return to the peak levels of 2022 might not be immediate, Ottawa's real estate landscape appeared poised for recovery. Dekker advised both buyers and sellers to exercise patience, assuring them of existing solid opportunities in the market.

2. Price Trends

In December 2023, the overall MLS® HPI benchmark price reached $623,900, a 2.7% increase from the previous year.

Notable benchmark prices included $704,900 for single-family homes (a 2.7% increase), $481,100 for townhouses/row units (up 4.2%), and $417,200 for apartments (a 2.1% rise).

The average price of homes sold in December 2023 was $632,487, reflecting a 1.7% increase from December 2022. However, the year-to-date average price saw a 5.5% decline from 2022, at $667,794. The total dollar value of home sales in December 2023 was $357.3 million, marking a substantial 9.4% increase from the same period in 2022.

OREB cautioned against solely relying on the average sale price to determine individual property value, emphasizing that prices varied across different neighborhoods.

3. Inventory and New Listings

December 2023 saw a significant 12.4% drop in new listings, with 523 new residential listings recorded. This figure represented a 4% dip below the 5 year average and a notable 16.1% decline from the 10-year average for December. 

The months of inventory in December 2023 numbered 3.3, slightly down from 3.4 months in December 2022. This figure represents the estimated time it would take to sell existing homes on the market at the current rate of sales activity.

Conclusion

In summary, the Ottawa real estate market wrapped up 2023 in a stable and balanced state. While challenges persist, the market's resilience and promising December activity offer hope for a strong and revitalized year ahead in Ottawa's real estate landscape. As the market dynamics continue to evolve, it's crucial for buyer and sellers to stay informed and leverage the expertise of industry professionals.

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